Dismissal on a permanent contract

Dismissal on a permanent contract

Is dismissal allowed on a permanent contract?

A permanent contract is an employment contract in which you do not agree on an end date. So your contract lasts indefinitely. With a permanent contract, you cannot be fired quickly. This is because such an employment contract only ends when you or your employer give notice. You must comply with the notice period and other rules that apply in a dismissal procedure. Your employer also needs to have a good reason. Moreover, this good reason will have to be assessed by the UWV or the subdistrict court.

A permanent contract can be terminated in the following ways:

  • Cancel yourself subject to the statutory notice period you can terminate your permanent contract yourself as long as you observe the statutory notice period. Note, however, that if you resign yourself, you will, in principle, lose your right to unemployment benefit and transition compensation. A good reason to resign is a signed employment contract with your new employer.
  • Employer has good reason to terminate the employment contract your employer argues a good reason and can substantiate it with a well-founded dismissal file. It is often tried first whether dismissal by mutual agreement is possible. If you cannot agree together, your reason for dismissal or the UWV or the subdistrict court will decide on the dismissal request. Examples of dismissal reasons that are common are:
  • economic reasons
  • inadequate functioning
  • disrupted working relationship
  • regular absenteeism
  • long-term disability
  • a culpable act or omission
  • work refusal
  • Standing dismissal due to (structurally) serious behavior if you have seriously misbehaved (structurally), your employer can summarily dismiss you. Think of an urgent reason, such as fraud, theft or violence. If you are summarily dismissed, your employer does not need to ask permission from the subdistrict court. However, it is essential that your dismissal was announced immediately and that you were told the urgent reason.

Dismissal procedures with a permanent contract

When your employer wants to terminate your employment contract indefinitely, he must have reasonable grounds for doing so (unless an exception applies). Depending on that ground for dismissal, one of the following dismissal procedures will be used:

  • By mutual agreement; although many people do not realize it, negotiation is almost always possible in a dismissal procedure. As an employee, you often have the most leeway when terminated by mutual agreement, as you can influence all provisions and your approval is required. The speed, relative certainty about the outcome, and the small amount of work this procedure takes are also often reasons for your employer to choose this. This involves the use of a settlement agreement. Have you received a settlement agreement? If so, always have it checked by an employment lawyer.
  • Through the UWV; dismissal from the UWV is requested for business economic reasons or long-term disability. Your employer will then ask for a dismissal permit.
  • Via the subdistrict court, if the first two options are both not possible/applicable, your employer will start proceedings with the subdistrict court. Your employer will then petition the subdistrict court to dissolve the employment contract.

Severance pay with a permanent contract

Basically, any employee who is involuntarily dismissed is entitled to a transition allowance. The starting point is that your employer initiated to terminate your employment contract. However, some exceptions can be down to both your employer and yourself. For example, you will not receive a transition allowance if, in the opinion of the subdistrict court, you have behaved seriously culpably. The subdistrict court may then omit the transition allowance. In very special situations, the subdistrict court may award the transition allowance despite the culpable conduct.

Level of transitional compensation

To determine the amount of statutory transitional compensation, the number of years of service and the amount of your salary are taken into account.

There is room for negotiation in all procedures.

It is good to know that dismissal is rarely a done deal. We are happy to assess your situation, and explain your chances and the best steps to take.

Please don’t stay in limbo any longer; we are here for you.

Feel free to contact our lawyers at [email protected] or call us at +31 (0)40-3690680.

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